This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: In the income-expenditure model, for each price level there is a different equilibrium output level. ... (Read 64 times)

pane00

  • Hero Member
  • *****
  • Posts: 579
on: Jun 30, 2018
In the income-expenditure model, for each price level there is a different equilibrium output level. These various price level and equilibrium output combinations are used to derive
 
  A) the slope of the planned expenditures line. B) the aggregate supply curve.
  C) the aggregate demand curve. D) a point on the aggregate demand curve.

Question 2

Why is the Fed referred to as the lender of last resort?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Bigfoot1984

  • Sr. Member
  • ****
  • Posts: 321
Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

Sometimes the federal funds market can fail. For example, during a financial panic, banks with excess reserves do not know who they can trust. They don't know which banks are solvent and which banks are not. Accordingly the banks with excess reserves may be unwilling to lend these reserves out. In such a crisis, the Fed can step in and provide reserves to the banks that need them and is hence referred to as the lender of the last resort.


pane00

  • Member
  • Posts: 579
Reply 2 on: Jun 30, 2018
:D TYSM

ryansturges

  • Member
  • Posts: 338
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

People with high total cholesterol have about two times the risk for heart disease as people with ideal levels.

Did you know?

In inpatient settings, adverse drug events account for an estimated one in three of all hospital adverse events. They affect approximately 2 million hospital stays every year, and prolong hospital stays by between one and five days.

Did you know?

Every flu season is different, and even healthy people can get extremely sick from the flu, as well as spread it to others. The flu season can begin as early as October and last as late as May. Every person over six months of age should get an annual flu vaccine. The vaccine cannot cause you to get influenza, but in some seasons, may not be completely able to prevent you from acquiring influenza due to changes in causative viruses. The viruses in the flu shot are killed—there is no way they can give you the flu. Minor side effects include soreness, redness, or swelling where the shot was given. It is possible to develop a slight fever, and body aches, but these are simply signs that the body is responding to the vaccine and making itself ready to fight off the influenza virus should you come in contact with it.

Did you know?

Glaucoma is a leading cause of blindness. As of yet, there is no cure. Everyone is at risk, and there may be no warning signs. It is six to eight times more common in African Americans than in whites. The best and most effective way to detect glaucoma is to receive a dilated eye examination.

Did you know?

Drugs are in development that may cure asthma and hay fever once and for all. They target leukotrienes, which are known to cause tightening of the air passages in the lungs and increase mucus productions in nasal passages.

Eye Model Eye Model
Model of spliceosome-mediated splicing of pre-mRNA Model of spliceosome-mediated splicing of pre-mRNA
Binding change model for ATP synthase Binding change model for ATP synthase
Possible Sources of Differences in Output per Worker Possible Sources of Differences in Output per Worker
Model of GABA - receptor chloride channel Model of GABA - receptor chloride channel
The Gene Expression Machine Model for Coupling The Gene Expression Machine Model for Coupling
Video: Studying the Left and Right Brain Independently

For a complete list of videos, visit our video library